Overview
Bitcoin was born in 2009, has more than 10 years, but still know, but few people understand how it works.
Conceptual block chain is accompanied by the rise of popular Bitcoin, but the district and just a block chain bitcoin, it is more extensive technical. Bitcoin is actually an application form block chain, is currently the most successful form.
Bitcoin in the concept is not complicated, but this form of decentralized and we have very different familiar way, we will find it difficult to understand.
I put together a bit of money according to their own understanding of concepts, and on their own understanding which processes are summarized as follows, hoping to help.
Some concepts bitcoin
These concepts are the foundation for understanding the operation of the entire bitcoin, without first understanding these concepts, we are unable to understand the operating mechanism of Bitcoin.
Address (Address)
The user may generate any number of private key and a public key based on the private key to build.
Address based on a public key is obtained, and is used to identify the recipient bit sum of money credits system a public / private key pair is It is used to uniquely identify an address (and the corresponding sum of money) owner
Output (Output)
One output is a tuple, bit comprising a certain amount of credits, and a use condition.
In most cases, conditions of use and requires a valid signature private key corresponding to an address associated
Input (Input)
One input is a tuple contains a reference to a front output has been created, as well as a set of parameters (signature) of the output conditions of use of these parameters will prove the creator the right to use the output of the transaction referenced
Trading output (UTXO, Unspent Transaction Output) unspent
UTXO credits bit is a very important concept of credits is no concept of the bit account balances, account for each sum value (address) of the balance is that all the addresses associated UTXO outputted
Transaction (Transaction)
Transaction is a data structure which describes a currency transfer bits (user to a receiver) of the case.
A transaction contains many inputs and outputs the newly created, which will result in the input output becomes referenced used (ie: from UTXO deleted). in addition, the output will be added to the newly created UTXO in.
Work demonstrated (Proof-of-Work)
Workload proof mechanism allows a participant to the other participants can prove that he has continued to use a certain amount of computing resources over a period of time
Block (Block)
A block is a data structure, a node on the local state changes accumulated packaged in blocks and transferred to the whole network.
A block comprises a set of transaction, a reference point to a node, and a random number (ie, random number found in the workload proof stage)
a block containing this block creator (miners) accepted and stored in its own memory pool all transactions that are generated after the last block a.
a node to find an effective random number to meet the workload proved its function after a block broadcast
Trading reward (Reward Transaction)
The first transaction in the block is called a reward transaction, the found block miners obtain a new bit to reward a certain number of credits it was confirmed that a set of transactions.
Reward transaction has a nominal input, an output the sum includes a fixed subsidy plus transaction fees to be confirmed by the block and all transactions.
Bitcoin transactions have a rule: the sum of all inputs must be greater than or equal to the sum of all output only reward transaction is unique. the exception
block Chain
From the beginning of creation block to the longest path until a leaf node, called the block chain.
Action block chain is to maintain a consistent transaction history, and all nodes will eventually be the only chain in the block agree on (transaction history)
How Bitcoin completion of the transaction
Bitcoin is a kind of virtual currency in the final analysis, the ultimate goal is to complete the transaction.
So, to understand how it is traded, will also be able to use it at ease.
The following questions and answers to explain the form of virtual currency transactions
What is involved in the transaction information?
Bitcoin transaction contains can contain multiple buyers and multiple sellers at the same time, because it is electronic money, called a transaction is actually a data structure describing the transaction, the data structure includes:
- One or more inputs , i.e. buyer
- One or more outputs , i.e., the seller
- Other information, such as the validity of the transaction and so on
- The total amount entered is generally greater than the total amount of output
Note concepts supra an input and output (in credits some concepts bits) content.
Enter the total amount is not always greater than the total amount of output?
Because Bitcoin is a decentralized, so transactions require people outside of trading participants to confirm.
Therefore, the general's trading, the total amount of input is always greater than the total amount of output, the extra money for that part of the bit to reward Identify the transactions involved in client (the miners)
However, some transactions are special, such as the first transaction in each block, the total amount of the transaction input is 0, the amount of output is awarded to the number of packaged blocks of Bitcoin miners.
Is currently 50 this number is halved every four years, it also ensures that the number of bitcoins is limited and will not grow indefinitely.
What is block, block and transactions have anything to do?
Block is packed multiple transactions, block transactions are packaged into the transaction confirmation, can not be modified.
To get the right to create a block, you need mining, the so-called mining, it is to complete the workload proved Bitcoin workload proof is calculated HASH value than who should meet the requirements.
calculate this value, have the right to pack the next block, and obtain the corresponding bit coin reward.
Bitcoin's market value so high, all willing to go only so much of the mining miners continue to try to meet the requirements calculated HASH value
How the growing block of memory?
Every time a new block is connected to the creation of a following, new block in addition to save their HASH value addition, also holds HASH value on a block.
All the blocks are complete storage use in all Bitcoin client, all of the blocks is a chain structure, which is the block chain the origin of the name.
Because each person has a complete record of the block chain, all fraud will be difficult, unless modified 50 recording block chain client% or more.
At the same time there are two blocks while creating what will happen?
Bitcoin is distributed, mining no restrictions, anyone can participate, so while there are two or more blocks are created at the same time also normal.
But there are multiple blocks simultaneously created, that is, the block chain bifurcation occurs, the bit is so processed credits: If bifurcation occurs, then after the bifurcation, to reach that branch of the six blocks, are considered the main chain,
another bifurcated discarded discarded points. trading on the fork, and then confirm the transaction if the conflict on the backbone, it is abandoned, the transaction does not conflict on the pool, waiting for the next new block package.
Bitcoin trading hours long?
Bitcoin block pack 10 minutes once a transaction up to 10 minutes can be confirmed, but because of the risk of bifurcation, usually after six basic blocks will be able to fully confirm the transaction.
In other words, Bitcoin transactions, up to take almost one hour to fully confirm, Bitcoin is not suitable for this shortcoming fast transactions.
Next .....
Bitcoin is a successful attempt to block the chain, although it has many shortcomings, but it allows for the first time to the center of the currency become a reality.
About it questions, you can leave a message in the comments, I will try to respond to whatever, and those who can help answer, please let us know!